America is now the world's second largest economy for the first time since 1872. Which nation beat it?

China has overtaken the United States and is now the world’s largest economy. The nation is worth £11 trillion.

17:15 09 October 2014

The International Monetary Fund has said that for the first time since 1872, the United States of America is no longer the largest economy in the world.

It has been overtaken by China, a nation with an economy worth £11 trillion. America settled for a close second with economy worth £10.8 trillion, the report stated.

China is expected to extend its lead with the IMF estimating its economy will be worth £16.7trillion in 2019.

The numbers are based on purchasing power parity, which makes adjustments for the fact that the goods are cheaper in China when compared to US. Without the adjustments for living cost, China’s economy would be worth £6.4trillion.

Meanwhile, the IMF also said that the US and UK “are approaching economic life-off” as they bounce back from the recession.

The PPP measure of output makes India the third largest economy, followed by Japan in fourth and Germany in fifth. Russia, Brazil, France, Indonesia and the UK make up the rest of the top 10 in that order.